§ 187. Earnings of inmates. 1. Every inmate confined in a state correctional facility, subject to the rules and regulations of the department of corrections and community supervision, and every inmate confined in a local correctional facility, in the discretion of the sheriff thereof, may receive compensation for work performed during his or her imprisonment. Such compensation shall be graded by the department of corrections and community supervision with regard to inmates employed in prison industries, based upon the work performed by such prisoners for prisoners confined in state correctional facilities, and by the sheriffs in all local correctional facilities for inmates confined therein.

2. The department of corrections and community supervision shall adopt rules, subject to the approval of the director of the budget, for establishing in all of the state correctional facilities a system of compensation for the inmates confined therein. Such rules shall provide for the payment of compensation to each inmate, who shall meet the requirements established by the department of corrections and community supervision, based upon the work performed by such inmates.

3. The department shall prepare graded wage schedules for inmates, which schedules shall be based upon classifications according to the value of work performed by each. Such schedules need not be uniform in all institutions. The rules of the department shall also provide for the establishment of a credit system for each inmate and the manner in which such earnings shall be paid to the inmate or his or her dependents or held in trust for him or her until his or her release.

4. Any compensation paid to an inmate under this article shall be based on the work performed by such inmate. Compensation may be paid from moneys appropriated to the department and available to facilities for nonpersonal service.